Lennar building, selling in Palencia

Thursday

Seizing what it sees as an opportunity in the local real estate market, Lennar is busy putting people in new homes in Palencia.

The company purchased a portion of the master-developed community north of St. Augustine in December and is already building new homes.

Barbara Moore, division president for Lennar, said her company bought the parcel from an investment group with the plan to start construction almost immediately.

"It is a busy time and there is pent-up demand for neighborhoods like this," Moore said. "We're very excited to see the response that we have."

Lennar is selling homes in the northern part of the development called Bella Terra (turn left at the roundabout and through the guard gate). Moore said Lennar's parcel was about half developed by ICI Homes when it was purchased and will eventually have about 500 homes.

According to listings on the Lennar website, single-family homes are available in the range of $300,000s to the $500,000s.

Moore said the building lots sat vacant during the economic downturn, but there is no reason to leave them empty now.

"We've seen the market improving over the last year," she said. "The economy is improving."

Building has picked up considerably in the last year in St. Johns County. At a County Commission meeting this month, Building Services Director Howard White went before the commissioners to request more personnel in his department because of the sharp rise in building permit requests.

Even with a renewed interest in building, Moore said Palencia still stands out.

"We think we have a one-of-a-kind community," Moore said.

She said the amenities - including a private golf course, tennis courts, four pools, several sports fields, parks and more - and location help attract buyers.

"There are very few communities available like Palencia," Moore said. "It (the location) is good for people who are working in St. Augustine or Jacksonville, and it's good for retirees."

Walter O'Shea is the managing director with Hines, which is the master developer of Palencia. He said the community has been good for a lot of people.

O'Shea said the development is zoned for 2,650 homes, which includes townhouses and condominiums. He said about 1,200 homes are currently occupied, which leaves quite a bit of room for future development.

The project, which started in 2001, has been "extremely successful," O'Shea said.

With the pickup in the housing market, building at Palencia has been healthy. O'Shea said about 50 homes have been built in the last 12 months with an average price of $500,000.

"We're in a great position going forward," O'Shea said.

Lennar representatives feel the same way - and not just about Palencia. The company is also active in St. Johns County developments like Nocatee and Mission Trace.

"It's a very good place to do business," Moore said. "The general population likes higher-end, nice developments.

"I think the uniqueness of St. Augustine is becoming very well known."

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